CoreWeave Inc (NASDAQ:CRWV) shares are trading sharply lower Wednesday morning after a Bloomberg report said Meta Platforms is developing a cloud business to sell excess artificial-intelligence computing capacity to outside customers. According to Bloomberg, Meta’s internal "Meta Compute" initiative could include selling access to AI models hosted on Meta infrastructure as well as raw computing capacity, a model described as similar to neocloud companies like CoreWeave. Meta’s plans remain in development and could change, and a company spokesperson declined to comment. The report is a direct overhang for CoreWeave because the company’s business is built around selling high-performance GPU cloud capacity for AI workloads. Investors may be selling CRWV on fears that Meta could become a powerful competitor in the same market, potentially increasing supply, pressuring GPU rental pricing and weakening CoreWeave’s scarcity premium. From a trend perspective, CRWV is trading 13.4% below its 20-day SMA and 18.2% below its 50-day SMA, and the stock is still down 42.60% over the past 12 months.